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A guide to home improvements and how to fund them

Posted by: In: Real Estate 06 Nov 2014 Comments: 0 Tags: , , , , , , , , , , ,

Photo: Phil Roeder

If you need extra space for a growing family or you’re in desperate need of a new kitchen, one option is to move. However, for many people, this simply isn’t feasible, either because of a lack of capital or a simple desire to stay where you are. If your home no longer suits you but you still want to stay, the only option remaining to you is to embark on a course of home improvements.

The Benefits of Home Improvement

Although home improvements have some rather obvious benefits, they also have some rather obvious downsides – namely, the cost. So, is it worth making drastic changes or is it better to just put up and shut up? Chances are, if you’re reading this, you’re doing some serious research on the subject, and that itself should be answer enough.

If you still need some swaying, think about the benefits. Yes, you’ll be spending money, but you will also be increasing your asset portfolio. Making the changes you want will not only make you happier, but could also make your home more attractive to buyers if you come to sell it down the line. Whether this is in five years or fifty, a loft conversion, for example, will not only increase floor space, but could also increase the value of your home. Similarly, basic improvements such as installing central heating or double-glazing will not only make your property more habitable but could also increase its value.

How to Fund Improvements

A simple problem remains: how do you pay for these changes? Long-term, any changes you make are likely to increase the value of your property, but more immediately you’re going to be spending a lot of money and not getting any of it back.

The money to make these changes has to come from somewhere, and very few of us have substantial enough savings to fund a major home renovation. Even those who do have a healthy bank account may recognise that using all of your savings in one go is not always the wisest move.

So where will the money come from? You could choose to put off making improvements until you’ve saved enough money specifically for the purpose of renovating your home. This requires a lot of discipline and an abundance of patience. However, irrespective of this, your need for funds is probably more immediate than this allows for.

If it just can’t wait, there are a number of options available to help you, from credit cards to bank loans to borrowing from friends and family. The subject is a complex one, so it is best that you conduct your own (thorough) research before choosing the best option for you, taking into account interest rates, repayment terms and the amount you can borrow.

One useful funding option in these situations is specifically tailored home improvements loans from secured loan companies such as Nemo Personal Finance. This might be an option for you if you want to borrow higher amounts, as lenders could lend up to £200,000. This keeps all of your home improvement costs in one place, avoiding financial confusion by having one simple monthly repayment. Of course, this option does come with interest payments, so make sure you can afford a loan before taking one out as the loan is secured against your home which could be repossessed if you don’t keep up the repayments.

Once you’ve got all of that sorted, it’s time to have some fun planning your dream home.

UK, Home Ownership

Source: The Movechannel


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